Why are intermediate goods not included in GDP? a. to avoid counting them twice in GDPb. to make sure only nondurable goods are included in GDPc. to keep goods that are not bought and sold out of the GDPd. to ensure that only goods produced in the US are included in GDP

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Sebastian Pollard

3 May, 01:30

Why are intermediate goods not included in GDP? a. to avoid counting them twice in GDPb. to make sure only nondurable goods are included in GDPc. to keep goods that are not bought and sold out of the GDPd. to ensure that only goods produced in the US are included in GDP

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Zackary Callahan · Answer 1

Answer: Option (a) is correct.

Explanation:

Correct option (a) : to avoid counting them twice in GDP.

Intermediate goods are the goods which are utilize in the production of final goods. Intermediate goods are like inputs in the production of final goods.

While calculating GDP of an economy, it includes the market value all the final goods and services that are produced in an economy.

While calculating GDP from value added method, this includes the value of all the stages that are included in the production of final goods.

So, the value of intermediate goods is not included in GDP, this is happened to avoid counting them twice in GDP.